US dollar's bounce falls flat; euro edges up

London

THE US dollar's bounce faded on Thursday after the US Federal Reserve's policy minutes failed to provide a clear picture of future interest rate increases, although investors were reluctant to add bearish bets before some key data.

Federal Reserve policymakers were split on the outlook for inflation and how it might affect the future pace of interest rate rises, according to the minutes of the Fed's last policy meeting on June 13-14 released on Wednesday. "The latest Fed minutes indicate that (chair) Janet Yellen is preparing the ground work for unwinding its balance sheet at the end of the year and markets aren't expecting large interest rate increases for now," said David Madden, markets analyst at CMC Markets in London.